NVIDIA CEO Jensen Huang Responds to AMD’s 10% Stake Offer to OpenAI for Unfinished AI Product

NVIDIA’s CEO, Jensen Huang, has recently expressed his thoughts regarding the significant agreement between AMD and OpenAI, shedding light on the competitive dynamics in the tech industry.

Jensen Huang Weighs in on AMD’s Alliance with OpenAI

Recently, AMD made headlines by entering a substantial partnership with OpenAI, committing to supply over six gigawatts worth of chips, including their forthcoming Instinct MI450 AI chip. This announcement followed closely on the heels of NVIDIA’s own major collaboration with OpenAI. The timing has intensified the competitive landscape between these two technological powerhouses.

In an interview with CNBC, Huang revealed his surprise at AMD’s eagerness to stake such a significant portion of their company—10%—before even rolling out the new product line. He commented:

It’s imaginative, it’s unique and surprising, considering they were so excited about their next generation product. I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess.

Huang’s remarks provide insight into the competitive tension as AMD’s strategy includes engaging OpenAI—a relationship that remained undisclosed at the time OpenAI’s deal with NVIDIA was being forged. This development positions both companies on a level playing field regarding their respective ambitions for next-generation AI technology, such as the Vera Rubin and Instinct MI450 systems.

AMD Instinct MI400 GPU Accelerator — Image Credits: WCCFtech

In a previous analysis, AMD’s CEO, Lisa Su, indicated that she anticipates generating a robust $100 billion through this partnership in the coming years, leveraging products like the Instinct MI450. This trajectory suggests that AMD is poised to challenge NVIDIA’s market share aggressively, particularly in the GPU and rack-scale sectors, necessitating a more accelerated development pace from Huang’s team.

While competition can yield beneficial innovations within the AI sector, it is crucial for NVIDIA to acknowledge AMD’s escalating position. For years, NVIDIA has maintained a quasi-monopoly in a market heavily dominated by its offerings, reflecting a significant shift as major corporations begin exploring alternatives.

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